HollyFrontier to buy refining, logistics assets from Sinclair in about 1.8 billion deal

(Reuters) -Hollyfrontier Corp and its pipeline partner will buy refining and logistics assets from privately held The Sinclair Companies in a $1.8 billion deal, the U.S. refiner said on Tuesday.

The deal comes as U.S. fuel demand continues to recover from last year’s coronavirus-led record lows, with vaccinations helping states reopen and road travel trending towards pre-pandemic levels.

A new company, HF Sinclair Corp, will replace HollyFrontier as the public company trading on the NYSE, it said in a statement.

Under the deal, HollyFrontier will buy Sinclair’s branded marketing unit, renewable diesel unit and two Rocky Mountain-based refineries.

The refiner said the deal is expected to add to HF Sinclair’s earnings, cash flow and free cash flow within the first full year.

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